It doesn’t look like I’m going to meet the goal I set for myself last year. A net worth of $210,000 is out of the question unless the stock market experiences a miraculous recovery. All things considered, my finances are still in good shape.
Every month, I review my account balances and income vs. expenses to keep myself accountable for my financial situation. I’ve been posting my financial reports online for about five years.
Despite further slips in the stock market, my “modified net worth” increased in November. This is attributed to my alternative income, which will be outlined in a post later today or tomorrow. But keep reading this article to see the breakdown of my net worth.
The above report is made with Intuit Quicken and Microsoft Excel. Here’s a balance sheet Excel template. If you don’t want to go through all the trouble I do every month, but you still want to post your financial reports online, I suggest checking out NetworthIQ.
Current Assets includes cash in bank and investment accounts, like savings, checking, and money market funds. It also includes “Accounts Receivable,” invoices I send to clients and advertisers. Accounts Receivable is increasing, which is good for business.
Any assets other than cash are included in Long-Term Assets, even if I plan to use the money in a few years. This is primarily my retirement funds, but I also include the value of my car and my other investments. Surprisingly, my car has been the best “investment” over the past year. According to edmunds.com, my car’s value has actually increased to $9,059.
I don’t plan on reflecting that in Quicken because it doesn’t make much sense.
I’m trying not to focus on my investments. My strategy right now is to keep my head down and continue the process that should pay off in the long run: continue bi-weekly investments in my 401(k) with the same asset allocation I determined last year, invest in an SEP IRA once a year, and buy the stock market on the dips at a rate of about $500 per month.
Thanks to my November cash experiment, I have hardly used my credit card over the past month. As long as I keep this experiment going, I my current liabilities will continue to be low.
I have only one long-term liability remaining, my student loan. That’s not for long, however. I’ve already scheduled my final loan payment for December 15. At that point, I will be fully debt-free for the first time since I’ve been an independent, income-earning individual.
That won’t last long. Society dictates I join the home ownership club, and that is the plan for when I feel I’m ready to “settle down.”
How was November for you, financially?
Published or updated December 2, 2008.